Question

73.

In perfect competition, the marginal revenue curve

		and the demand curve facing the firm are identical.
		intersects the demand curve when marginal revenue is minimized.
		is always above the demand curve facing the firm.
		is always below the demand curve facing the firm.

75.

Marginal revenue is

		the additional profit the firm earns when it sells an additional unit of output.
		the added revenue that a firm takes in from selling an additional unit of output.
		the difference between total revenue and total costs.
		the ratio of total revenue to quantity.

76.

Profit-maximizing firms want to maximize the difference between

		total revenue and total cost.
		total revenue and marginal cost.
		marginal revenue and marginal cost.
		marginal revenue and average cost.

77.

The profit maximizing behavior of a monopoly is different from that of a perfectly competitive firm in that a monopoly can

		control the position of its demand schedule, but a competitive firm cannot.
		only choose the desired output, while a competitive firm can control only price.
		control the desired price and output to maximize profits, but a perfectly competitive firm can only choose the desired output.
		only choose the desired price, while a competitive firm can control only output.

Answer 1

73) mr and the demand curve facing the firm are identical. as P=MC=MR=D

option(A)

75) MR = change in TR/change in output

the added revenue that a firm takes in from selling an additional unit of output

option(B)

76) marginal revenue and marginal cost.

option(C)

77) Monopoly control the desired price and output to maximize profits by setting MR=MC, but a perfectly competitive firm can only choose the desired output by setting P=MC

option(C)